Germany to Scrap Gas Storage Fee for Neighboring Countries

0 153

Germany is removing a fee it charged neighboring countries for accessing its natural gas reserves. This levy, implemented during the 2022 energy crisis, aimed to recoup costs of buying non-Russian gas at high prices.

European nations like Austria, Czech Republic, Hungary, and Slovakia criticized the fee, arguing it hindered their efforts to switch away from Russian gas. The European Commission also questioned its legality due to EU single market rules.

Germany has agreed to abolish the fee by January 1st, 2025. This will significantly reduce gas transit costs for neighboring countries and support their transition from Russian gas. However, the fee increase planned for July 2024 will still apply, primarily impacting German customers.

While the fee for neighboring countries is scrapped, Germany’s gas storage system will remain operational, with the financing issue still to be addressed.

Source: Reuters

Leave A Reply